Canada’s Economic Forecast<\/p>\n
Currency dynamics show changes with GBP\/USD dropping to daily lows around 1.3360 due to unsatisfactory UK data, while EUR\/USD faces mild pressure near 1.1730 amid rising US dollar strength. Meanwhile, Gold faces challenges at $4,300 per troy ounce while Litecoin stabilises above $80 but struggles to maintain gains observed earlier.<\/p>\n
The S&P 500 experienced a rise, despite the Fed’s recent rate cut, affecting various market sectors. Aave’s price approaches a breakout opportunity, trading above $204 and nearing its descending parallel channel’s upper boundary.<\/p>\n
In 2025, various broker evaluations are available, addressing diverse trader needs. This includes brokers with low spreads, high leverage, Islamic accounts, and those specialising in trading EUR\/USD or Gold.<\/p>\n
The information is for informational purposes and entails potential risks and uncertainties. Thorough research is recommended before making investment decisions. The views expressed are those of the authors and not necessarily those of FXStreet or its advertisers. <\/p>\n
Canadian Economy and Investment Strategies<\/p>\n
Based on the information from December 12, 2025, the weaker-than-expected Canadian capacity utilization figure suggests a slowing economy heading into the new year. We see this as an opportunity to look at bearish positions on the loonie, potentially using put options on the CAD\/USD pair. This view is supported by recent Statistics Canada data showing a surprising 0.4% drop in retail sales for October 2025.<\/p>\n
With UK GDP shrinking again, the focus shifts to the Bank of England meeting on December 18th. We believe the weakening economy, reminiscent of the challenges faced in the post-pandemic recovery of 2023-2024, will force a dovish stance from policymakers. Look to position for further sterling weakness against the dollar, perhaps through shorting GBP\/USD futures ahead of that meeting.<\/p>\n
The Federal Reserve’s recent rate cut seems to be a “one-and-done” for now, with the dollar finding a floor and the 2-year yield holding firm around 3.50%. This suggests traders could use options to play both sides of the EUR\/USD, as the pair seems stuck until we get clearer guidance from Fed officials. Current market pricing, according to the CME FedWatch tool, shows over an 80% probability that the Fed will hold rates steady in its January 2026 meeting.<\/p>\n
The breakout in gold and silver to record highs should not be ignored, as it signals a powerful trend. We should consider using call options to gain upside exposure while managing risk, as momentum appears strong. This rally is underpinned by persistent inflation concerns and significant central bank buying, a pattern that has been building since the record purchases we saw back in 2022.<\/p>\n
The Japanese yen continues to look soft, and we expect this to continue through the upcoming Bank of Japan policy decision. The persistent interest rate difference between Japan and other major economies makes shorting the yen an attractive carry trade. With Japan’s own national core CPI for November 2025 coming in at just 0.5% year-over-year, the BoJ has little incentive to surprise the market with a hawkish turn.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Canada\u2019s utilisation rate missed forecasts; GBP\/USD and EUR\/USD face pressure; Gold struggles; Aave nears breakout.<\/p>\n","protected":false},"author":62,"featured_media":17021,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-36743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/36743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=36743"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/36743\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/17021"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=36743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=36743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=36743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}